Summary of this article
Japan to approve first yen-backed stablecoins this autumn.
Thailand launches crypto payment sandbox for foreign tourists.
Hong Kong warns of fraud risks after stablecoin regulations.
Japan is proceeding with its own stablecoin proposal. The Financial Services Agency (FSA) of the country is about to greenlight the issuing of Japanese yen-backed stablecoins as soon as this fall. This would be the first time that Japan permits a domestic fiat-pegged cryptocurrency, as stated in a Cointelegraph report.
The initial rollout will be boosted by Tokyo fintech company JPYC, which is set to become a money transfer business this month. This news was confirmed in a Sunday report by Japanese newspaper The Nihon Keizai Shimbun.
JPYC will have a constant value of one token, which is equivalent to one Japanese yen. The stablecoin will be supported by very liquid assets like bank deposits and Japanese government bonds. Once people or businesses apply, the tokens will be distributed through bank transfers directly to digital wallets.
This endorsement will be a big move for Japan, which to date has mostly experienced the application of US dollar-pegged stablecoins such as USDT and USDC. The dollar-backed token-dominated global market for stablecoins is already in excess of $286 billion. Japan's new yen stablecoin will thus be its first effort at offering a local alternative.
In a recent social media post on platform X, Okabe, a spokesperson for JPYC issuing company, stated yen-backed stablecoins may have an impact on the bond market in Japan. He explained that in the US, the largest stablecoin issuers are now significant holders of the US Treasury bonds as collateral against tokens in circulation. The same could happen in Japan when yen stablecoins start to grow, he stated.
Thailand To Launch Crypto Payment Sandbox For Tourists
Thailand is set to launch a new regulatory sandbox enabling foreign tourists to use cryptocurrency to make payments in the nation. The initiative, termed TouristDigiPay, is set to begin today, August 18. According to this scheme, travellers will have the opportunity to exchange their cryptocurrencies into Thai baht and use the converted fund for digital payments. The system will operate via e-money service providers, as stated in a Saturday report by the Thai newspaper The Nation.
According to Cointelegraph, travellers who would like to use the service will have to undergo Know Your Customer (KYC) procedures, a step that confirms customers' identities prior to executing transactions. Providers of the services under the scheme will be regulated by the Bank of Thailand and the Securities and Exchange Commission of the nation.
The sandbox will also have robust protections. These will include caps on expenditure to ensure the system is not abused and a regulation that will prevent direct cash withdrawals of the converted crypto. Further details about the scheme are to be announced formally later today by Deputy Prime Minister and Finance Minister Pichai Chunhavajira.
TouristDigiPay is being launched when Thailand's tourism sector is still in recovery mode. The objective is to attract more foreign tourists and provide them with easy payment options, particularly when arrivals from major markets such as China have declined. China has been one of the major sources of tourists for Thailand for years now, but figures have been declining.
Statistics by the World Tourism Institute indicate that Thailand received approximately 16.8 million visitors in the first half of 2025. This is fewer than 17.7 million tourists for the same period last year. The report also indicated a 24 per cent decline in tourists from East Asia and a steeper, much 34 per cent drop in tourists from China. Most visitors are opting for other destinations within the region instead. Japan, with its softer currency, the yen, has become more affordable, while Vietnam is enticing travellers with its lower costs.
Hong Kong Warns Of Fraud Risk After New Stablecoin Rules
Regulators in Hong Kong are taking caution after the implementation of regulations for stablecoins. A representative of the Securities and Futures Commission (SFC) has advised that the new regime has heightened the threat of fraud. The remarks were reported by Cointelegraph on the basis of an August 18 report carried by Chinese financial publication Zhitongcaijing.
Ye Zhiheng, who is the executive director of the intermediaries division at the SFC, said that the arrival of stablecoin regulations has led to new dangers. He advised investors to remain careful and to avoid making rushed or emotional decisions that might be influenced by market hype or sudden price movements.
The warning follows stablecoin businesses based in Hong Kong losing double-digit sums on August 01, 2025, immediately following the introduction of the new regulations. Experts at the time labelled the sell-off as a correction that was good for the market, as the regulations for stablecoin issuers proved to be tougher than anticipated.
The SFC and Hong Kong Monetary Authority last week made a joint statement regarding recent market volatility in the stablecoin market. They stated that abrupt market movements were usually associated with company announcements, news stories, or social media commentary, indicating that firms intend to seek a licence to issue stablecoins or pursue related business in Hong Kong.
The regulators equally indicated that they will be keeping close watch on the trading of stablecoins in the region. They emphasised that there would be tough action against any activity deemed deceptive or manipulative, as such practice would harm trust in the financial sector.
